Question

If the lease factor is given as 0.0016, what interest rate is that equivalent to?

Answer 1

To convert the lease factor of a certain amount or transaction to interest rate, we just have to multiply the value by 2, 400. 

                     interest rate = (0.0016)(2400) = 3.84%
the interest rate is 3.84%

Answer 2

Answer:

The rate of interest is 3.84%.

Step-by-step explanation:

It is given that the lease factor is 0.0016.

Let the rate of interest be r.

The formula which describes the relation between rate of interest and lease factor is

$\text{Interest Rate}=\text{Lease factor}\times 2400$

Substitute Interest Rate=r and Lease factor=0.0016 in the above equation.

$r=0.0016\times 2400$

$r=3.84$

The value of r is 3.84, therefore the rate of interest is 3.84%.